By means of Communication “A” 7532 (“Rule”), the Argentine Central Bank increased restrictions and modified the Foreign Exchange and Foreign Exchange regulations, establishing new conditions and limitations to access the foreign exchange market (“MULC”) to perform payments for imports of goods, services to non-residents and other concepts. The following is a summary of the most relevant measures:
Imports of Goods
Reduction of the monthly limit for SIMI category A. As of March 4, 2022, the Argentine Central Bank began to categorize SIMIs. SIMIs are an instrument to make the monitoring of imports simpler and transparent, to ensure compliance with basic safety regulations for imported products.There are 3 SIMI classifications: category A, B and C, according to different conditions. With the classification, the Argentine Central Bank provides each import with different terms of access to the MULC for the payment of imports, establishing a maximum annual quotawhich is calculated on all imports made in 2020 plus 70%, or imports made in 2021 plus 5%, whichever is less, will be the applicable quota for 2022.
Unlike category B and C, the SIMI A category may access the MULC to make advance payments, on demand with and without customs registrations. The incremental 20% over the annual limit established on the basis of the previous year for importers to access the MULC for the payment of imports with SIMIs category A or C was eliminated. Therefore, the monthly limit will be limited to the proportional part of the proportional part corresponding to the current month assigned for each category of goods, depending on whether they are SIMI A or C.
Limit amount for SIMI A. As of 07/1/22, when the computable amount per FOB value in 2021 was equal to or less than USD 1,000,000 (one million US dollars), the Rule will assign to each importer a limit amount for SIMI A categories of 115% of the computable FOB value.Imports with non-automatic licenses. It suspends for 90 days (until 09.30.22) the exception for the payment of imports of goods subject to non-automatic import licenses, without counting on the mandatory financing term as from the customs entry corresponding to each SIMI category. Until September 30th, 2022, those goods subject to non-automatic import licenses enter the computation to define the limits of SIMI A and C categories, considering the imports made under this figure during 2020 and 2021, while SIMI B may access the market from 180 days after the release. Payment of imports with funds from financing. For the payment of imports with SIMI B or C in which funds disbursed by an import financing from a local entity with funds originated from a commercial credit line from abroad are used, the requirement of the importer’s affidavit where the importer committed to register the customs entry of the goods within 15 days of their arrival in the country is eliminated.
Complementary provisions. Until 09/30/22, for the payment of imports of goods or cancellation of capital of debts originated in the importation of goods, importers must (in addition to the requirements imposed) provide the following affidavits: (a) that the annual limit of imports may only be used proportionally to the calendar month in which the payment is being requested, and (b) that such information is compatible with the data existing in the CBRA from the online system applicable for such purpose.
Both affidavits, which will be incorporated in the forms for the closing of exchange of the entities, will not be applicable to make payments on:
goods whose customs entry registration occurred until 12/31/21 and/or on a date compatible with the terms foreseen for SIMI B and C categories for the type of goods (180 days, or 90 days for fertilizers and/or phytosanitary products and/or inputs insofar as they are used for the local processing thereof).
goods entered by private request or courier or to operations of: (i) supplies, equipment and spare parts for the construction, repair, maintenance or replacement of parts of “off shore” hydrocarbon production and treatment facilities, (ii) goods destined for sale in duty free stores and (iii) goods entered to free trade zone.
goods entered under a temporary import destination.
The import of capital goods, kits for the detection of COVID-19 or other goods, petroleum or bituminous mineral oils, their preparations and their residues, import of bituminous coal without agglomeration, pharmaceutical products and/or supplies to the extent that they are used for their local manufacture, and other goods related to health care, or when the client accesses the foreign exchange market simultaneously with funds settled as advances or pre-financing of exports from abroad or pre-financing of exports granted by local financial entities with funding in credit lines from abroad, or with “Certification associated to the financing of the import of goods necessary for the production in the country of automobiles and/or auto parts” that have a SIMI B or C declaration associated, with the exception of goods subject to non-automatic import licenses. operations carried out with “Certification of increase of exports of goods”, Certification of entry of new financial indebtedness abroad or by means of the increase of the amounts for the realization of payments of imports of goods or cancellation of capital of debts originated in imports of goods. transactions carried out with funds originated in a financing of imports of goods granted by a local financial entity from a commercial credit line from abroad, to the extent that the maturity date of the financing granted is equal to or later than the estimated date of arrival of the goods in the country plus the minimum term foreseen for the good (180 (one hundred and eighty) days) plus 15 (fifteen) calendar days.
Imports of capital goods. Until 30.9.22, payments for imports of capital goods (BK according to MERCOSUR Common Nomenclature) are restricted to payments on demand or commercial debt without customs entry record, for up to 80% of the total value of the goods to be imported, leaving the remaining 20% to be cancelled with the nationalization of the goods.
Addition of new goods to the mandatory financing lists. New tariff positions for goods shipped as of 06.28.22 are added to the lists of deferred payment at 180 days and 360 days from the date of registration of customs entry of the goods.
Services provided by non-residents.
Limit amount. In addition to the requirement of prior administrative authorization, SIMPES, a maximum limit is incorporated for payments of services rendered by non-residents: the proportional part corresponding to the current month, of the total amount of payments made by the importer during the year 2021, minus the letters of credit or guaranteed letters issued in its name by local financial entities for the importation of services. For the purpose of calculating the limit amount, payments made in 2021 for (a) insurance premiums, (b) payment of claims, and (c) operations carried out through certifications of increase of exports of goods and entry of new financial indebtedness abroad are excluded. Payments foreseen and framed on (i) Certification of increase of exports of goods and (ii) certification of new financial indebtedness with foreign countries.
Exclusions. Payments for services to non-residents for the following concepts are excluded from the limit amount:
- a) the payment corresponds to the concepts of insurance payments and payment of claims.
- b) payment is made 180 (one hundred and eighty) calendar days after the date of effective rendering of the service.
- c) the importer of the service accesses simultaneously with the settlement of a new financial indebtedness with the foreign country for which the totality of the capital has maturity after the date of effective rendering of the service plus the term provided for in item d),
- d) the importer of the service accesses with funds originated in a financing of imports of services granted by a local financial institution from a commercial line of credit from abroad and the totality of the capital of the financing has a maturity date after the date of effective rendering of the service plus the term foreseen in item d).
Transactions between related parties. The Rule maintains the impediment for the payment of services to non-residents in the case of transactions between related parties.
Financial Debts
Expansion of assumptions for early payment. The Rule incorporates as alternatives to access the foreign exchange market prior to the maturity of payments of debt securities with public registration in the country three new options, under certain requirements and conditions:
- Pre-cancellation of principal and interest, with the proceeds from the receipt of a pre-financing of exports from abroad. In this case, the entity must request a statement in which the client indicates that the collections from exports will be imputed to the cancellation of the principal prior to the maturities computed for the purpose of compliance with the conditions indicated.
- ii. Pre-cancellation of principal and interest of a debt security registered in the country simultaneously with the entry of a financial indebtedness abroad.
iii. Pre-cancellation of principal and interest of a debt security registered in the country simultaneously with the liquidation of a new debt security.
Deadline for settlement of new financings. Advances, pre-financing and post-financing from abroad must be entered in the foreign exchange market within 5 (five) business days from the date of collection or disbursement abroad, with an additional term of 10 (ten) calendar days to settle them in the foreign exchange market.
This report cannot be considered as legal or any other type of advice from Allende & Brea.
